Anchor Replacement Cost Calculator

Replacing an anchor is expensive. This calculator stacks tenant improvement allowance, free rent, brokerage, and capex to size total cost.

Anchor SF

TI per SF

Free rent months

New monthly rent

Brokerage %

Brokerage years

Building capex

Total anchor replacement cost

$1,930,000

TI cost

$1,375,000

Free rent cost

$270,000

How the math works

Total = TI ($/SF × SF) + free rent + brokerage (rent × years × %) + building capex. All cash out of LL pocket.

Replace-cost math makes 'pay-anchor-to-stay' deals look cheap by comparison. Negotiate renewal extension 18-24 months before expiration — much cheaper than replacing.

How to Use

Enter anchor square footage.
Enter TI per SF.
Enter free-rent months.
Enter new monthly rent.
Enter brokerage %.
Enter building capex.
Read total cost.

Frequently Asked Questions

Typical anchor TI?

$30-$80 PSF for junior anchors (15k-30k SF). $20-$50 PSF for big-box (30k+). Grocery: $40-$120 PSF (high with refrigeration infrastructure). Specialty: wide range.

Free rent?

3-12 months typical. Non-cash but opportunity cost. Usually spread as credit against rent rather than straight abatement, but economically the same.

Brokerage?

4-6% of rent value (typically years 1-5). Split between tenant and landlord brokers. Significant on large deals; negotiate aggressively on full commission.

How often should I rerun this?

Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.